Pension changes proposed.

[kengillard]

The Productivity Commission has suggested that the pension age be lifted to 70.

Also that those pensioners who own their own home have an "equity release" applied (basically a reverse mortgage)  and paid to the govt.   Hope it doesn't happen!!

[kengillard]

http://www.news.com.au/national/breaking-news/push-to-lift-pension-age-tap-home-equity/story-e6frfku...

[*crikey*mate*]

the equity release will never fly.

[icyfroth]

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@my*mum wrote:

the equity release will never fly.

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I wouldn't surprised if it did.

[*crikey*mate*]

At first I thought it could and that it would be good, to be honest. But how could they apply it with equality?

What happens to the asset rich/cash flow poor? How do the extract the money? A reverse morgage? applied retrospectively?

The incentive for anyone to own their own home would be obliterated. They would create a national housing shortage.

I haven't researched this and would love to discuss it and learn more, but off the top of my head and on the fly, it would nearly breach Discrimination Laws, wouldn't it? They would have to increase the medicare levy paid by tax payers to an equitable amount (but how according to the statistics proposed in that article?) and then also apply it to all of the other pension and welfare types. Otherwise it simply would not be just law.

[*crikey*mate*]

and surely the High Court would challenge it on a constitutional basis!

Spoiler

plus considering the retirement age, income and retirement plans of judges, I reckon they'd be fighting the hardest LOL

[the_great_she_elephant]

So would the government also have to legislate to prevent people approaching pensionable age from taking out a reverse mortgage themselves and blowing it all on a new car, a kitchen makeover and a trip round the world before they retire - after all, you can't take out a reverse mortgage on a house that is already mortgaged to the hilt.

[polocross58]

I thought government had scraped the bottom of the barrel when Gillard and Swan took a grab at all bank accounts which hadn't been activated for three years, despite that many of those accounts were of the trust variety which didn't need to be activated.  Swan said he hoped to grab $109 million from that little exercise, which goes to show how desperate they were after their years of corruption and waste

No, Aussie government.  Those of pension age have paid you for over 50 years.  You've robbed them blind, taking a third of their earnings all the way through.  And for what -- so you can give billions to overseas governments for sweet all?  So you can hand Afghanis and Lebanese muslims close to $10,000 apiece plus free dental, plus free medical, plus free ciggies and grog and golf, etc. etc. ?

So you can give middle easterners free housing for their four wives and four separate lots of kids?  So you can give them free money to live on for life because they no speaka our language, have no marketable skills, no training and no interest in working and paying tax to this Land of Plenty ?

You want people from whom you've already grabbed one third of their lifetime's earnings to give you MORE ?

Don't think so.  Try the Swiss model instead -- yes, try that.  The Swiss are on the verge of giving everyone $700 per week whether or not they work.  Try that and you might win a few votes

and why not try the Swiss model ?  Better than watching you grab one third of poor people's wages for life so you can waste it on people like Rudd and Carr and their first-class jaunts to wherever.  Better than paying a ransom to a clutch of ex Prime Ministers every week when in reality, they should be giving the Aussie people a refund.  Then eliminate automatic pensions for any goon who's spent a few years in what we laughingly call Aussie politics when they look as if they belong in the back row of a country school's P & C meeting.  Useless bludgers who contribute zip and soak us for millions, year in and out

You want what from me?  You want to steal my children's inheritance now?  After stealing a massive portion of my income all my life?   For what -- so you can provide Disneyland for more illegal bludgers?  So you can waste billions on demountables for the offspring of foreigners who lie their way here?

Nope.  You will not steal my children's inheritance.  We will move.  Now pull your neck in and stop giving Aussies' money to foreigners and start looking after those who pay the bills in this country -- the same few still employed and paying the wages, the over-generous wages, of the public servants posing as politicians

[lyndal1838]

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@my*mum wrote:

What happens to the asset rich/cash flow poor? How do the extract the money? A reverse morgage? applied retrospectively?

The incentive for anyone to own their own home would be obliterated. They would create a national housing shortage.

---

The proposal I saw was that when anyone received government benefits they woud be required to sign over half the capital gains on their home....to be paid to the government when the house was sold.

What I would like to know is why should the government get anything if a house is sold to pay nursing home fees for the owner.  It could take thousands of dollars of the owners capital and make it that they may have difficulty paying their fees.

Looks like Death Duties by stealth to me.

[cherry*135]

Here are the correct details re proposed tapping into a pensioners home value from the Productivity Commission.

The report also proposes tapping into pensioners' greatest asset - the family home - by making them hand the government half the yearly increase in their home's value.

A pensioner with a home worth $500,000, for example, could expect to see its value rise by $10,000 a year.

Once a pensioner needed assistance at home - or if their partner had to enter an aged care home - then half that capital gain, or $5000 a year, would be earmarked for the government.

The money would be paid to the government once the house was sold.

http://www.news.com.au/money/superannuation/plan-to-raise-retirement-age-to-70/story-e6frfmdi-122676...